Hey there, time traveller!
This article was published 30/7/2013 (1362 days ago), so information in it may no longer be current.
MONTREAL -- Younger Canadians spend more on luxury travel and fashion than any other demographic, but selectively choose what they splurge on, says American Express Canada.
Generation Y -- which include those born after 1983 -- had an 89 per cent increase in luxury travel spending and a 13 per cent increase in luxury fashion spending in 2012 compared with 2011, say data from the credit card company.
They could be spending more money because they are just starting their careers, but they target their luxury spending, said Jennifer Hawkins, vice-president and general manger for merchant services with the company.
"For example, they may choose to fly economy, but when they arrive at a holiday destination they really put money aside for things such as fine dining or a fantastic hotel experience," she said.
The credit card company looked at members' spending on luxury fashion, travel and lodging, ranging from purchases of designer clothing to vehicles.
According to the data, seniors -- those over 60 -- increased their spending on luxury travel by 52 per cent in 2012.
While luxury travel is growing faster than luxury fashion and lodging, Hawkins said all age groups were selectively spending on luxury purchases that are "meaningful" to them.
American Express Canada said luxury spending is expected to continue to grow in Canada, helped by the arrival of luxury U.S. retailers such as Saks. It expects online spending in general to double by 2015 to $12.5 billion.
A recent online poll by the Bank of Montreal found Canadians were planning to save almost $10,000 this year, but 66 per cent said they were tucking the money away for vacations, luxury items and entertainment.
-- The Canadian Press